RESTORE Act should be honored in BP negotiations

Two years after the largest oil spill in U.S. history, BP is still negotiating settlements that could amount to billions of dollars for the five Gulf Coast states affected by the 2010 Deepwater Horizon disaster.

But legislators from both sides of the aisle are worried about the direction negotiations between BP and the U.S. Department of Justice seem to be taking. Some are worried that the money may be paid in a way that may funnel as much money to the affected states as was originally intended when they passed the RESTORE Act. That piece of legislation, which was introduced by U.S. Sen. Mary Landrieu, D-La. and U.S. Sen. Richard Shelby, R-Ala., signed July 6 into law by President Obama.

We agree with those lawmakers that there is ample reason for concern.

Landrieu and seven other Gulf Coast senators expressed their concerns in a recent letter to the president.

It's a complicated issue that would take a team of Philadelphia lawyers to explain all the ramifications of this worrisome change in the game.

The RESTORE ACT stipulates that 80 percent of fines levied against BP under the Clean Water Act would go toward economic and environmental restoration of the five Gulf Coast states affected by the spill.

But there is a concern that the Justice Department might allow BP to pay the lion's share of the fines under the Oil Pollution Act, with a relatively small amount being paid under the Clean Water Act.

Less money to the Clean Water Act, less money to the states.

The latter agreement would be more advantageous to the oil giant, because fines collected under the Oil Pollution Act are looked upon more favorably under the U.S. tax code than are Clean Water Act fines, according to Associated Press and Reuters reports earlier this month.

The importance of the RESTORE ACT to the affected states is that it makes sure the bulk of fines will go to help the people and areas affected by the spill. Without it, all most of the decisions as to where the money is spent will be made at the federal level.

The news release from Landrieu's office stated that reports in the press suggest that "the DOJ is leaning toward a global settlement agreement involving a low penalty figure under the Clean Water Act in exchange for a higher penalty figure under the Oil Pollution Act for Natural Resources Damages Assessment and Restoration."

Such a settlement would circumvent the intent of the bipartisan RESTORE Act, the news release said.

It should be noted that these Justice Department negotiations are entirely separate from the negotiations over the civil class-action lawsuit against BP.

Those negotiations, which also involve billions of dollars that could flow into the state for businesses and individuals, have been led by attorney Patrick Juneau and do not involve government agencies. That settlement agreement has already received preliminary approval from all parties involved and will go before a judge Nov. 8 for final approval.

Meanwhile, Landrieu and other coastal legislators are awaiting the outcome of the government's negotiations with BP.

The press release from Landrieu's office went on to say that the letter from the eight senators to the president "calls on the Department of Justice to respect the will of Congress and negotiate a settlement of the Deepwater Horizon oil spill case that holds BP and other responsible parties accountable under every applicable statute."

They're right.

An end-run around the RESTORE Act could conceivably land the settlement money in government projects and programs that are not in the best interest of the people affected by the oil spill.

Those negotiating the settlement should honor the spirit of the RESTORE Act and act in the best interests of the victims of the Deepwater Horizon disaster.

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RESTORE Act should be honored in BP negotiations

Two years after the largest oil spill in U.S. history, BP is still negotiating settlements that could amount to billions of dollars for the five Gulf Coast states affected by the 2010 Deepwater